Paying the driver on a 1099 is illegal, according to the IRS and they have been coming down on a lot of companies that do this.
New truck
Discussion in 'Questions From New Drivers' started by natanishe, Jan 17, 2015.
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"semi" retired, G.Anthony and Numb Thank this.
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What type of driver would work for .40 to .45 cpm on 1099? No benefits, no loyalty to you or your equipment! My company pays brand new drivers out of school that and they are home every 4 days for 4 days. Times are changing dear, if you want a driver... you better pony up some real money and benefits.
"semi" retired and G.Anthony Thank this. -
Absolutely right kemosabi49,big time illegal.
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Haven't heard from poor natanishe yet. Probably freaking out. See, that's what is so great about this site, as one can ask these questions and get a pretty good response. Years ago, people would go into these ventures, (how hard could it be) without any real knowledge of the business and lose their shirt.
G.Anthony Thanks this. -
Why do people keep saying that?!? It is NOT illegal. It is crappy...but not illegal. IRS does not give a rats butt who pays the taxes...as long as they get paid.G/MAN Thanks this.
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http://tentiltwo.com/running-your-business-blog/1099-vs-employee-you-need-to-know-the-difference/
So in other words, if the guy tells the driver to go here, go there, fuel here, fuel there, use my fuel card, use my paperwork, HE IS an employee, and NOT a 1099.
Now being a 1099 may not be illegal, but the IRS in years has come down hard on trucking companies that pay this way. Oh yeah, by the way, to be a "true 1099 employee"? He may NOT be driving another person's truck, but HIS OWN!. That IS a true 1099 employee. Providing the truck, fuel card? Than that person IS an employee!
And this link
http://www.strictlybusinesslawblog.com/2011/08/04/there-is-no-such-thing-as-a-1099-employee/Last edited: Jan 17, 2015
HardlyWorkingNeverHome, HotH2o and Numb Thank this. -
If that were the case every lease operator would be considered an employee since they don't own the truck and are issued a fuel card. Owner operators could also be considered an employee since they are issued a fuel card under this assumption. You are correct in that paying on a 1099 is NOT illegal. I wish some who continue stating that it is illegal would get their facts straight. -
I dunno about a TRUE o/o being an employee? He/she buys the truck, maybe the trailer, buys the insurance, etc,etc, get's a fuel card from a fueling company (like you know a credit card under his/her company name), and NOT the trucking company or brokerage house they do business with, so (to me) I'd think that a TRUE o/o IS an independent, and not an employee?
With all the things happening from a tax stand point, the IRS has come down on the industry, so one needs to beware of the consequences in listing a person, as the articles stated.
I think that the "lease operator" is indeed an employee however. Since they are under the control of the company, where as a TRUE o/o has control over everything? -
Always like these defend a 1099 contractor(employee) If you are a true contractor then a load from CA to FL, if there were no time constraints, route restrictions due to oversize or elevation then you could route yourself through Boston to check your mail if you chose to. Can you do that as a supposed1099 contractor(employee)? Or maybe just take a month or two off?
Won't argue the IRS angle, they can do that themselves. -
If they offer such a good opportunity why are they looking for suckers to lease them a truck and they find a driver, should they want to buy their on fleet of trucks so they could make more money?"semi" retired Thanks this.
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